HSBC accused of targeting Hong Kong dissidents fleeing territory

HSBC was the target of protests against its decision to close the Hong Kong opposition party's bank accounts earlier this month. : Lam Yik/Bloomberg

Politicians in the UK and the US have accused HSBC of targeting Hong Kong dissidents fleeing the country over pension rights.

Alicia Kearns, Conservative MP and Foreign Affairs Committee Chair, and Mike Gallagher, US Republican Representative, wrote to FTSE 100 lender bosses expressing «deep concern» that HSBC is banning some residents Hong Kong from the withdrawal of pension contributions.

In a letter to chief executive Noel Quinn, first reported by the Financial Times, Ms Kearns and Mr Gallagher wrote: “We are concerned that HSBC – in support of the Hong Kong National Security Act – is withholding pension funds from BNO [British National Overseas passports] and thus contributes to the oppression of the people in Hong Kong.”

The rebuke comes as HSBC faces growing scrutiny for its activities in China and Hong Kong, where it has been accused by British MPs. on complicity in the violation of human rights.

HSBC backed a Beijing-backed law passed in 2020 to ban anti-government activities in the former British colony. At the time, the bank said it «respects and supports all laws that stabilize public order in Hong Kong.»

Since the passage of the law, HSBC has frozen the bank accounts of numerous activists, including supporters of Democratic politician Ted Hui, on orders Hong Kong police.

A separate February report by the All Party Parliamentary Group on Hong Kong also claimed that HSBC blocked payments to those who fled to the UK.

It alleged that HSBC blocked the payments after claiming travel documents provided by the British government. it was not enough for immigrants from Hong Kong to unlock their savings.

More than 88,000 people have obtained UK residency after leaving Hong Kong under the British National Overseas (BNO) visa scheme since early 2021.

Hong Kong residents can usually leave their pension plans if they make a «permanent departure» to resettle elsewhere, or if they retire early or are seriously ill.

HSBC stated: “In case of permanent departure, scheme participants must provide proof of right of residence outside Hong Kong.”

“[The Regulator] has published guidance on what evidence scheme participants can rely on, and how all banks, we must obey the law and the instructions of the regulators.”

In the letter, Mr. Gallagher and Ms. Kearns asked HSBC for information on who authorized the decision not to recognize BNO passports and whether the board members knew about it.

The bank, which considers Hong Kong its largest market, repeatedly stated that she must comply with the laws in all jurisdictions where she works.

However, the letter from two leading Chinese hawks highlights the growing difficulties HSBC faces in both China and the West.

Earlier this month, HSBC closed the bank accounts of Hong Kong's opposition party as the lender increasingly backs Beijing in its crackdown on the city-state.

The bank closed three accounts that were used to receive political donations from the League of Social Democrats (LSD), one of Hong Kong's few remaining opposition parties.

Earlier this year, The Telegraph reported that HSBC acknowledged that it risks endangering human rights in its pivot to Asia.

During an internal audit, the bank found that freedom speech and freedom from arbitrary arrest were among the many human rights it could undermine as a result of its business activities and relationships.

Hong Kong has plummeted in the human rights rankings since the introduction of the national security law, with experts calling suppression of freedom of expression and freedom from arbitrary arrest by areas of particular concern.

In May, HSBC shareholders overwhelmingly rejected a proposal to split the global lender despite campaigning from its largest investor.